Canada-based Slate Asset Management has acquired Annaly Capital Management’s Commercial Real Estate Business (ACREG) in a $2.33bn deal.
The deal covers a portfolio of performing real estate loans, debt securities and real estate equity positions.
It also includes a $0.4bn portfolio of grocery-anchored real estate assets in the US, which will be acquired by Slate’s pure-play US grocery-anchored business, Slate Grocery.
ACREG team members will join Slate upon closing of the transaction, which is expected to occur by the middle of the year.
Slate co-founding partner Blair Welch said: “We believe this transaction is another example of Slate’s ability to find value for our partners and investors at an opportune time in the market cycle.
“The acquisition of this platform further expands Slate’s core capabilities across the real estate capital stack. Combined with our investment platform, sophistication, institutional relationships and operational expertise, we are uniquely positioned to provide creative debt capital solutions in the current market environment.”
Slate was served by BMO Capital Markets as financial advisor and Goodwin Procter and McCarthy Tétrault as legal advisors.
Evercore is serving as financial advisor and Ropes & Gray as legal advisor to Annaly.
In August 2019, Goldman Sachs Asset Management took a passive, non-voting minority equity stake in Slate Asset Management.
The investment was made through GSAM’s Petershill programme, which focuses on offering financial assistance to mid-sized asset managers.